Blackstone, La Caisse lead 25% purchase by investor group
Air Canada is selling a 25% minority stake Aeroplan to an investor group led by Blackstone and La Caisse, alongside PSP Investments and the British Columbia Investment Management Corporation.
The airline will retain a 75% stake and control over Aeroplan’s strategy, operations and day-to-day management, with no changes expected for members or partners as a result of the transaction. The $2.5 billion selloff, and implied valuation of $10 billion, far exceeded analyst valuations for the rewards program that Air Canada purchased for $450 million in 2019.
The deal is expected to close Aug. 17.
“This investment highlights Aeroplan as a differentiated loyalty platform and showcases the exceptional value created since its acquisition,” Air Canada EVP and chief financial office John Di Bert said in a statement. “The transaction strengthens Air Canada’s financial position by unlocking value from Aeroplan while retaining full operational control.”
Investors appeared to welcome the move, with Air Canada shares climbing 12% Wednesday to close at $30.61, their highest level since early 2020, according to BNN Bloomberg.
Tuesday’s deal came the same day Air Canada shared after a difficult second quarter, lowering its adjusted EBITDA outlook to between $2.9 billion to $3.2 billion from the previously forecast of $3.35 billion to $3.75 billion
EQ Bank puts PC Optimum partnership into action
EQ Bank is marking its new role as the exclusive banking partner of Loblaw’s PC Optimum program with a campaign designed to put the financial brand directly into the loyalty program’s everyday shopping experience.
The “Grand Scan Contest” gives PC Optimum members the chance to win 25 million points in what EQ Bank is calling the biggest single points giveaway since the program was launched in 2018. Running Aug. 13 to 26, members will be automatically entered on when they scan their PC Optimum card on purchases of $20 or more at participating Loblaw affiliates and Shoppers Drug Marts.
The activity marks an early move by EQ Bank to leverage its new PC Optimum relationship following its acquisition of PC Financial in an $800 million deal that closed on July 1.
